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Consumer Electronics May Get Fried

FBR Capital has a negative bias on the sector.

Updated Dec. 21, 2009 12:01 a.m. ET

FBR Capital Markets

OUR BIAS TOWARD THE stand-alone consumer-electronics (CE) sector is negative. We are initiating coverage of consumer-electronics retailers Best Buy (ticker: BBY) and hhgregg (HGG) and are assigning both a Market Perform rating.

The $126 billion CE market is highly competitive, with alternative classes of trade...